TMI Blog2009 (5) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Tribunal. Forty persons had applied for the share capital of the respondent furnishing complete details of their name, address, PAN and bankers. These details were forwarded to the AO who has failed to give an account of his inquiries pertaining to them, except for the nine shareholders residing in Bombay. The AO has not given adequate details as to why additions have been made in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n set out as follows : Firstly it is to be noted that the issue though under s. 68 is not of the simply cash credit but is in the form of share capital. The assessee received application for allotment of shares from forty persons. All these parties made necessary application and their complete details like name, address, PAN number, bank details etc. are available and were filed before the AO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT vs. Steller Investment Ltd. (1991) 99 CTR (Del) 40: (1991) 192 ITR 287(Del) are correct. The Full Bench of the Hon'ble Delhi High Court also held that if the shareholders exist, then possibly no further enquiry need to be made but if the AO finds that the alleged shareholders do not exist, then in fact it would meant that there is no valid issuance of share capital. In the present case it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned CIT(A). 3. It will be useful to clarify that CIT vs. Divine Leasing Finance Ltd. (2007) 207 CTR (Del) 38: (2008) 299 ITR 268(Del) has been affirmed by the Supreme Court of India in CIT vs. Lovely Exports (P) Ltd. (2008) 6 DTR (SC)308. Their Lordships have succinctly commented that there was no merit in the SLP for the simple reason that if the share application money is receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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